"As investors, we love dividend stocks, especially the ones that have high yields since they provide a steady source of income and improve the total return potential. The total return for any investment includes dividends, interest and capital gains. So as we step into September with the hope of the Federal Reserve enacting an interest rate cut, it is time to focus on the high-yield dividend stocks that can generate more passive income for you since fixed income will be less appealing in a lower rate environment."
"The company hasn't been able to deliver outsized gains this year, which has left investors worried. PEP stock is down 34% in 12 months and 4.55% in 2025. However, as a dividend stock, PepsiCo is one of the best to own. With a P/E ratio of 25.83, the stock looks highly undervalued and is down from the 52-week high of $179. It is exchanging hands for $141 as of writing."
High-yield dividend stocks can provide steady passive income and boost total return through dividends, interest, and capital gains. Anticipation of a Federal Reserve interest-rate cut reduces fixed-income appeal and strengthens the case for dividend stocks. Undervalued dividend-paying companies can be reinvestment opportunities or sources of cash to cover expenses amid market uncertainty. Three undervalued dividend stocks with yields above 4% and records of increasing dividends were identified as candidates to supply steady quarterly income with dividends appearing safe. PepsiCo yields 4.02%, has rewarded investors for 53 years, trades near $141 with a P/E of 25.83, and attracted a disclosed $4 billion stake.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]